Dissertation (MA Business Administration)The study investigates the effect of strategic planning on the performance of local government in Tanzania. Specific objectives are; to assess the effects of setting objectives on the performance of local governments, assessing the effects of budgetary allocations on the performance of local governments and to assess the effects of performance review on the performance of local governments. A descriptive research design was employed using 70 respondents who were employees with questionnaire as data collecting tool. The data were analyzed using multiple regressions. The study found that there was a positive and significant relationship between strategic planning and performance of local governments. This study revealed that budgetary allocations have a significant influence on the performance of local governments. This study revealed that performance review has a significant contribution to performance of local governments. The study recommended that municipality should to train worker staff in place to provide a high level of return as a well-trained worker staff will promise forceful usage and control over budgetary allotments which preparing helps partners to have capacity to take part within the argument handle, satisfactory budgetary allocation is basic as will empower a district to improve and grow the delivery of administrations which municipality must have clear objectives and specific targets of what has got to be done to create away from any doubt the objectives are accomplished.